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To: Rocket Red who wrote (120404)	6/25/2008 9:35:03 PM
From: Proud Deplorable	Respond to of 313017

Sorry meant to post this more current one ======================= Silvinit approves loans for Russian potash deposit Mon May 5, 2008 7:06pm IST By Natalya Shurmina YEKATERINBURG, Russia, May 5 2008 (Reuters) - Russian potash miner Silvinit SILV.RTS has won approval from its shareholders to borrow up to $2 billion to pay for a licence to develop part of the world's No. 2 deposit of the mineral fertiliser. Silvinit said on Monday the majority of its shareholders voted in favour of raising four separate loans, thwarting an attempt by rival miner and minority shareholder Uralkali (URKA.MM: Quote, Profile, Research) to block the plan. "The final decision on the amount and parameters of the loans and the banks will be taken after additional bilateral consultations," Silvinit said in a statement. Potash is trading at record prices as a global fertiliser shortage coincides with booming world demand from farmers keen to grow more grain. Russia is among the top producers, with Silvinit alone accounting for over a tenth of global supplies. This unprecedented demand for soil nutrients led three Russian miners to pay 20 times the asking price at a series of auctions this month as the government sold off the largest potash deposit outside the Canadian province of Saskatchewan. Silvinit, through its Kama Mining joint venture with state conglomerate Russian Technologies, was the biggest winner in the carve-up of the Verkhnekamskoye deposit, agreeing to pay $1.47 billion for the rights to the Polovodovsky licence area. Uralkali, which holds slightly over 25 percent of Silvinit shares, was the second-largest bidder for Polovodovsky and failed to win either of the two other licences up for grabs. Uralkali spokesman Alan Basiyev said the company's representatives had voted against Silvinit's borrowing plans. Dmitry Rybolovlev, Uralkali's chairman and main shareholder, said in March he opposed Silvinit's plans to raise loans to pay for the deposit and build a mine there. POTENTIAL LOANS Silvinit said in the statement its shareholders had approved four separate loan deals in principle, although it was not certain that each deal would be followed through. Each vote required a simple majority. The potential deals involve Silvinit lending 4 billion roubles ($168.3 million) to Kama Mining, acting as guarantor for a 17.6 billion-rouble ($740.7 million) loan from state-controlled bank VTB (VTBR.MM: Quote, Profile, Research) and taking out a $475 million loan with Russia's largest lender, Sberbank (SBER03.MM: Quote, Profile, Research). Silvinit may also act as guarantor for another $560 million loan to Kama Mining, the company said. "Kama Mining Co will be ready to pay, in full and on time, for the licence for the rights to the Polovodovsky area," Silvinit said in the statement. (Reporting by Natalya Shurmina, writing by Robin Paxton; editing by James Jukwey)